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In about an hour, the Federal Reserve is expected to announce some kind of strategy for the near future -- possibilities range from doing nothing to an expansive intervention -- with Fed Chairman Ben Bernanke scheduled to speak at a news conference at 2:15 p.m.
Given how little the Fed has done, and how willing Bernanke & Co. have been to let the weak recovery trudge along, many on the left have accused the Fed chairman -- a Republican originally appointed by George W. Bush -- of having partisan motivations. Bernanke, the theory goes, is neglecting opportunities to undermine President Obama's re-election chances.
Oddly enough, with widespread rumors about the Fed taking additional steps today, congressional Republicans suspect the opposite.
"It really is interesting that it is happening right now before an election," said Rep. Raul Labrador (R-Idaho). "It is going to sow some growth in the economy, and the Obama administration is going to claim credit." [...]
While many Republicans have criticized the Fed on economic grounds, an announcement about new stimulus -- which could send financial markets soaring in the run-up to the election -- is likely to bring charges that the bank has partisan aims.
"They are the ones who always say they want to remain independent. So they should consider, just how independent are they when they come out, only 50 days before the election, with this?" said Rep. Scott Garrett (R-N.J.).
Ordinarily, elected officials at least try to maintain the pretense that their principal concern is with the public's welfare. Members of Congress are not, in theory, supposed to root against the economy for purely partisan reasons.
But with Bernanke considering additional steps, some of these Republican lawmakers aren't even bothering to keep up appearances. Labrador concedes he believes Fed action will "sow some growth in the economy," but he's upset anyway -- a better economy might reflect well on the president. Garrett is resorting to almost threatening the Fed -- it's some nice independence you have there, Mr. Bernanke; it'd be a shame if something happened to it.
What matters, in other words, is pre-election posturing, not whether Americans benefit or suffer. For decades, Republicans supported boosting the economy through monetary stimulus; Democrats preferred fiscal stimulus. In the Obama era, Republicans now oppose both, fearing the Obama administration might possibly "claim credit."
I'm not shocked by the cynicism, but it's unusual to see policymakers talk like this openly and on the record.
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Rep. Raul Labrador R Idaho "It is going to sow some growth in the economy and the Obama administration is going to claim credit" This should be a banner headline of how the GOP are rooting against the economy and the welfare of the American people.
Translation:
"We've been working hard for two years to make sure unemployment stays above 8%. Now Bernanke wants to waltz in here and fix things when we are almost to the goal? NO FAIR!"
"Members of Congress are not, in theory, supposed to root against the economy for purely partisan reasons."
Of course that 'theory' has been disproved by the statements made and actions taken and avoided by the Republican's in Congress since Obama was sworn in as President.
It's also just a "theory" that surely isn't rooted in the reality of the last 3.5 years. GOP partisan & proud of it, never ones to allow shame, hypocrisy, and lies stand in the way of "making Obama a 1 term President"!
VOTE OUT THE GOTP CONGRESS!
"elected officials at least try to maintain the pretense that their principle concern is with the public's welfare."
-or DID, until ACORN installed a Kenyan usurper in OUR White House!
-(Please check the batteries in your snarkometer before replying)
I think too many acorns have fallen on your head. Whose White House? That fictional White House and America that teabaggers love citing so much?
it's ok for us to lie because that kenyan, muslim, socialist, etc. lied about being an american, christian...
how am i doin so far?
-- snark off -- set paranoia to stun --
my biggest worry is that the conservatives in business will begin a purge of jobs in the run-up to the election to show just how bad the economy is. this will, of course, be blamed on the president's failed policies. they are perfectly willing to take the short term hit to get one of theirs in the white house. after all, they've taken the long term hit by citing "uncertainty" in the economy as a reason to sit on their billions rather than put people to work.
if this tactic works, they will immediately release their money and jobs on the economy. this will result in a landslide victory in the mid-terms in 2014. with the resultant supermajorities in place, it will be time to rev-up the congress and get some truly odious legislation passed.
like - "businesses are people, my friend" - so businesses deserve one vote for each employee to be used in any district in which they do business.
-- reset paranoia -- i said, "reset paranoia" -- please, reset paranoia -- oh $hit --
It should be "principal concern," not "principle."
True . . . most elected officials are not concerned with principles.
Amazing how much cash and insurance these right wingers have. How they can figure to benefit from misery and survive the fallout is stunning. Of course if they regain power they will just simply invent a new word for stimulous, and pretend they were never obstructionists. The problem for them is that all that "energy" from the Midterms has got more folks engaged, and people that are honest can see the con/scam.
Off topic, but who the f*ck is John Thomas? Hosting a show on MSNBC right now. Had on a democratic senator from Colorado and kept talking about and showing a 5 week old poll showing Mittens ahead in Colorado by 5%; even though much more current polls show Obama ahead by 4%. Now attacking teachers unions. Has on Melissa Harris-Perry and is attacking her for not being opposed to Chicago Teachers Union. @sshole! Idiot! Repuke plant? Now pimping for Sarah Palin. Really glad to see more of the liberal MSNBC fullfilling their corporately assigned roles of repuke enablers.
I noticed that too. Well, we don't really need to watch msnbc anymore if money is what matters to them most.. Too bad we'll have to look for another station that is on our side and reflects the truth.
Republicans who are against stimulus to help Americans are only hoping that the President will fail at bringing us out of this depression. He has not failed, Republicans need to give it up...the cat's out of the bag. We know their game is to destroy his reputation, they are the ones who have destroyed our economy, and they're not even lifting 1 finger to fix it, the only finger they're lifting is the one right in the middle and it is pointed at The Middle Class. Games are for children so is trying to control women. Are there any real Republican men?
After four years of a Romney/Ryan Administration there won't even be a middle class in this country.
Confusion is an old , comfortable partisan slipper . This can oft times lead to the slippery traction found in old comfortable partisan slippers .
So while climate change and its sob sister global warming are as illusory as the smoke and ash from Krakatoa , i.e. it doesn't exist , the appearance of eight , or is it nine , of the warmest years on record occur (allegedly) in the past ten years are of a piece . Without the subtle allusions available to accomplished sophists who imply that for every action there is an equal but opposite reaction , let me simply state that there is no excuse for action .
If every action has an equal but opposite reaction , the very idea of provoking a sickly economy is comparable to the once thriving medical practice of bleeding sick and wounded people . Just because it was once fashionable to hasten the demise of the ill doesn't speak well of demising a sickly economy . Tsk ...
When will we learn ? Changing horses now in mid stream , and Tippecanoe too ? If it is possible to be heard above the raucous calumny by special interests , and those supposedly speaking as representatives of the same , is it not possible to give the choking economy as much room to breathe as possible , without being manipulative ?
Who ever wants to see the death of our economy should be adding their voice to the ill bred cacophony that supports this as a political manipulation . For the rest , shocking as it seems , sometimes we must pick our fights . Perhaps the view of Mozart in his fever , precious blood being siphoned away , will steer us clear from the tragic course that fashionable for the moment , leaves us with no Sonnets , no brag jus fac .
This is a bit abstruse, but seems slyly and intentionally absurd. Congratulations.
The Fed is doing the hard work of managing the economy because you, Congressman, have failed to do so.
"It is going to sow some growth in the economy..."
Is there a problem with that? Doofus
To grow the economy you need a middle class that has jobs that pay good wages so they will have money to purchase products.
The old cutting interest rates ploy to get people to borrow more money and get deeper in debt is not going to work anymore because interest rates can't get much lower and people don't want to go deeper in debt.
The answer is creating jobs. Maybe the bankers at the Fed can help do that.
Steve- Do you mean this? Isn't the theory that he is undermining the President's re-election chances? Or do you mean he's neglecting opportunity to help the economy? I'm confused.
Great finds and excellent post. However, you are not critical enough of many of our fellow liberals. "Given how little the Fed has done, " is crazy. Before Thursday (QE3 day) and after 2009, the Fed had already made huge gigantic unprecedented (except in 2008-9) efforts to get the economy going. The claim that it did little is based on two sources.
First there are monetarist fanatics who are absolutely sure that the Fed can get the economy to do what the Fed wants. So the failure of the Fed's efforts is proof that they were "little" (just $600 billion here $400 billion there not real money (those numbers are exact and not at all humerous hyperbole -- you asserted that $1 trillion is "little")).
Second there are tinfoil hat paranoiacs who are sure that, since Bernanke is a Republican, he must care more about hurting Obama than helping the economy.
I have no doubt that future historians will be mystified by those (until yesterday and they will start again soon) who think that Bernanke was sabotaging the recovery. He is clearly, by far, the most radically expansionary Fed chairman in history and this was clear the day before yesterday.
Robert - good post. The Fed is independent of the administration. Greenspan was appointed by both Clinton and Bush.
Steve - Given how little the Fed has done, and how willing Bernanke & Co. have been to let the weak recovery trudge along - what are you smoking??? Uncle Ben has not only lowered interest rates to 0% and has told the market that he will keep this rate until 2015, he has implemented 2 rounds of quantitative easing, operation twist and now another round of QE to buy mortgage backed securities until well after the economy recovers. What more do you want him to do? Ben is actually sowing the seeds of the collaspe of the dollar and crippling inflation which will require the next Fed chairman to raise interest rates and put us into another recession.